IDEAS home Printed from https://ideas.repec.org/p/ags/srlewp/131464.html
   My bibliography  Save this paper

Market structure and coherence of international cooperation: the case of the dairy sector in Malawi

Author

Listed:
  • Revoredo-Giha, Cesar

Abstract

A supply chain in disarray can be identified not only as a barrier to growth for the agricultural sector but also as one to achieving food security in a country because it may lead to either a deficiency in food production and/or too high prices. Using the dairy sector of Malawi as an example, the purpose of this paper is to discuss the coherence between market structure and the development strategy pursued by international donors via. Within Malawi the dairy sector may be characterised as a segmented market: with both formal and informal milk markets, with smallholder producers serving both markets. The formal market includes a reducing number of processing firms operating with idle capacity and selling dairy products to an affluent segment of the urban population, whilst the informal market comprises the sale of unprocessed milk products to the less affluent urban population and also rural areas. In this context, cooperative international action, conducted through agencies from a range of countries, is targeted at improving the efficiency of the formal supply chain and also the creation of local supply chains that sell processed products directly to poor consumers. The paper discusses reasons why these two cooperation strategies, given the structure of the sector, may potentially conflict with each other, the need to address the degree of market imperfection of the formal sector and the desirability of ex-ante coordination of plans amongst donors.

Suggested Citation

  • Revoredo-Giha, Cesar, 2012. "Market structure and coherence of international cooperation: the case of the dairy sector in Malawi," Working Papers 131464, Scotland's Rural College (formerly Scottish Agricultural College), Land Economy & Environment Research Group.
    • Handle: RePEc:ags:srlewp:131464
    DOI: 10.22004/ag.econ.131464
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/131464/files/leergworkingpaper64.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.131464?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Gow, Hamish R & Swinnen, Johan F M, 1998. "Up- and Downstream Restructuring, Foreign Direct Investment, and Hold-Up Problems in Agricultural Transition," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 25(3), pages 331-350.
    2. A. M. Azzam & E. Pagoulatos, 1990. "Testing Oligopolistic And Oligopsonistic Behaviour: An Application To The Us Meat‐Packing Industry," Journal of Agricultural Economics, Wiley Blackwell, vol. 41(3), pages 362-370, September.
    3. Mingxia Zhang, 1997. "The Effects of Imperfect Competition on the Size and Distribution of Research Benefits," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(4), pages 1252-1265.
    4. Ecker, Olivier & Qaim, Matin, 2011. "Analyzing Nutritional Impacts of Policies: An Empirical Study for Malawi," World Development, Elsevier, vol. 39(3), pages 412-428, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Revoredo-Giha, Cesar & Arakelyan, Irina & Chalmers, Neil & Chitika, Rollins, 2013. "How Responsive to Prices is the Supply of Milk in Malawi?," 2013 Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 160590, African Association of Agricultural Economists (AAAE).
    2. Neil Chalmers & Cesar Revoredo-Giha & Charles Jumbe, 2019. "Measuring the Degree of Integration in the Dairy Products Market in Malawi," Social Sciences, MDPI, vol. 8(2), pages 1-13, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alston, Julian M. & Sexton, Richard J. & Zhang, Mingxia, 1999. "Imperfect competition, functional forms, and the size and distribution of research benefits," Agricultural Economics, Blackwell, vol. 21(2), pages 155-172, October.
    2. Jeon, Sang-Gon, 2008. "Estimation of Political Oligopoly Power of Domestic Producers in the Korean Raw-Milk Market," Journal of Rural Development/Nongchon-Gyeongje, Korea Rural Economic Institute, vol. 31(5), pages 1-23, November.
    3. Tian Xia & Brian Sancewich, 2018. "Interaction between buyer power in agricultural procurement and seller power in food retailing, and optimal allocation of anti-trust efforts," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 6(1), pages 1-19, December.
    4. Bai, Yan & Costlow, Leah & Ebel, Alissa & Laves, Sarah & Ueda, Yurika & Volin, Natalie & Zamek, Maya & Herforth, Anna & Masters, William A., 2021. "Review: Retail consumer price data reveal gaps and opportunities to monitor food systems for nutrition," Food Policy, Elsevier, vol. 104(C).
    5. Çakır, Metin & Nolan, James, 2015. "Revisiting Concentration in Food and Agricultural Supply Chains: The Welfare Implications of Market Power in a Complementary Input Sector," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 40(2), pages 1-17, May.
    6. María Priscila Ramos & Estefanía Custodio & Sofía Jiménez & Alfredo J. Mainar-Causapé & Pierre Boulanger & Emanuele Ferrari, 2022. "Do agri-food market incentives improve food security and nutrition indicators? a microsimulation evaluation for Kenya," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 14(1), pages 209-227, February.
    7. Dave, Dhaval & Doytch, Nadia & Kelly, Inas Rashad, 2016. "Nutrient intake: A cross-national analysis of trends and economic correlates," Social Science & Medicine, Elsevier, vol. 158(C), pages 158-167.
    8. Tesfaye, Wondimagegn & Tirivayi, Nyasha, 2020. "Crop diversity, household welfare and consumption smoothing under risk: Evidence from rural Uganda," World Development, Elsevier, vol. 125(C).
    9. Houssa, Romain & Verpoorten, Marijke, 2015. "The Unintended Consequence of an Export Ban: Evidence from Benin’s Shrimp Sector," World Development, Elsevier, vol. 67(C), pages 138-150.
    10. Kumse, Kaittisak & Suzuki, Nobuhiro & Sato, Takeshi, 2018. "Measuring Oligopsony Power in Thai Jasmine Rice Market; Re-evaluating the Paddy Pledging Program," 2018 Annual Meeting, August 5-7, Washington, D.C. 274198, Agricultural and Applied Economics Association.
    11. Ronchi, Loraine, 2006. "Fairtrade and market failures in agricultural commodity markets," Policy Research Working Paper Series 4011, The World Bank.
    12. Devadoss, Stephen, 1998. "Importance Of The Processed Food Sector For The U.S. Agricultural Industry," Research Discussion Papers 29246, Montana State University, Department of Agricultural Economics and Economics, Trade Research Center.
    13. Perekhozhuk, Oleksandr & Grings, Michael, 2007. "Econometric Analysis Of Market Power On The Ukrainian Market For Raw Milk," 47th Annual Conference, Weihenstephan, Germany, September 26-28, 2007 7575, German Association of Agricultural Economists (GEWISOLA).
    14. Petrick, Martin, 2004. "Governing Structural Change And Externalities In Agriculture: Toward A Normative Institutional Economics Of Rural Development," IAMO Discussion Papers 14878, Institute of Agricultural Development in Transition Economies (IAMO).
    15. A. M. Azzam, 1992. "Testing The Competitiveness Of Food Price Spreads," Journal of Agricultural Economics, Wiley Blackwell, vol. 43(2), pages 248-256, May.
    16. Del Prete, Davide & Ghins, Léopold & Magrini, Emiliano & Pauw, Karl, 2019. "Land consolidation, specialization and household diets: Evidence from Rwanda," Food Policy, Elsevier, vol. 83(C), pages 139-149.
    17. Brockhaus, Jan & Kalkuhl, Matthias & Kozicka, Marta, 2016. "What Drives India’s Rice Stocks? Empirical Evidence," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235659, Agricultural and Applied Economics Association.
    18. Kofi A. A-O. Agyei-Henaku & Charlotte Badu-Prah & Francis Srofenyoh & Ferguson K. Gidiglo & Akua Agyeiwaa-Afrane & Justice G. Djokoto, 2024. "Citations of Publications on Foreign Direct Investments into Agribusiness: Nature, Variability and Drivers," SAGE Open, , vol. 14(1), pages 21582440241, February.
    19. Grau, Aaron Stephan Alexander & Hockmann, Heinrich, 2017. "Estimating oligopsony power on two vertically integrated markets," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261277, European Association of Agricultural Economists.
    20. Lin, Jessie & Gupta, Anubhab, 2022. "Implications of Farm Size and Staple Production on Rural and Urban Food Security and Dietary Diversity," 96th Annual Conference, April 4-6, 2022, K U Leuven, Belgium 321161, Agricultural Economics Society - AES.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:srlewp:131464. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/lesacuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.